To amend titles XIX and XXI of the Social Security Act to permit States the option of coverage of aliens who are citizens covered under the Compact of Free Association legally residing in the United States under the Medicaid Program and the State children’s health insurance program (SCHIP).

IN THE HOUSE OF REPRESENTATIVES

JULY 8, 2002

Mrs. MINK of Hawaii introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To amend titles XIX and XXI of the Social Security Act to permit States the option of coverage of aliens who are citizens covered under the Compact of Free Association legally residing in the United States under the Medicaid Program and the State children’s health insurance program (SCHIP).

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Compact of Free Association Children’s Health Improvement Act of 2002’.

SEC. 2. OPTIONAL COVERAGE OF ALIENS WHO ARE CITIZENS COVERED UNDER THE COMPACT OF FREE ASSOCIATION LEGALLY RESIDING IN THE UNITED STATES UNDER THE MEDICAID PROGRAM AND SCHIP.

(1) in paragraph (1), by striking ‘paragraph (2)’ and inserting ‘paragraphs (2) and (4)’; and

(2) by adding at the end the following new paragraph:

‘(4)(A) A State may elect (in a plan amendment under this title) to provide medical assistance under this title, notwithstanding sections 401(a), 402(b), 403, and 421 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, for aliens who are citizens covered under the Compact of Free Association legally residing in the United States and who are otherwise eligible for such assistance, within either or both of the following eligibility categories:

‘(i) PREGNANT WOMEN- Women during pregnancy (and during the 60-day period beginning on the last day of the pregnancy).

‘(ii) CHILDREN- Children (as defined under such plan), including optional targeted low-income children described in section 1905(u)(2)(B).

‘(B) In the case of a State that has elected to provide medical assistance to a category of aliens under subparagraph (A), no debt shall accrue under an affidavit of support against any sponsor of such an alien on the basis of provision of assistance to such category and the cost of such assistance shall not be considered as an unreimbursed cost.’.

(b) SCHIP- Section 2107(e)(1) of such Act (42 U.S.C. 1397gg(e)(1)) as amended by section 803 of the Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000, as enacted into law by section 1(a)(6) of Public Law 106-554, is amended by redesignating subparagraphs (C) and (D) as subparagraph (D) and (E), respectively, and by inserting after subparagraph (B) the following new subparagraph:

‘(C) Section 1903(v)(4) (relating to optional coverage of categories of citizens covered under the Compact of Free Association legally residing in the United States), but only if the State has elected to apply such section to the category of children under title XIX.’.

(c) EFFECTIVE DATE- The amendments made by this section take effect on October 1, 2002, and apply to medical assistance and child health assistance furnished on or after such date.